(Bloomberg) -- Debt tied to Altice fell on Wednesday after the company spooked investors with disclosures saying that it freed certain units from debt covenants, according to people with knowledge of the matter. 

Altice France’s euro-denominated term loans due August 2028 dropped 2 cents on the euro and are indicated at about 72 cents, according to Stonex data. The company’s bonds due October 2029 also fell around 1 cent to 65.6 cents, according to data compiled by Bloomberg. Altice International’s bonds due January 2028 slumped 2.5 cents to about 59.9 cents. 

The struggling telecommunications group posted filings in an investor portal saying it had designated a series of subsidiaries as “unrestricted,” said the people, who asked not to be identified because the disclosures were private.  

Those moves are often the first step to raising new money in deals that hurt creditors by weakening their claims on collateral, or selling assets without giving the proceeds to creditors

Traders and investors were left scrambling to figure out what assets — if any — were held by the new unrestricted units, the people added. The subsidiaries include AlticeXPM, Altice Participations and Altice Luxco III S.a.r.l., the people said. 

A representative for Altice declined to comment. 

Altice France, which controls French mobile operator SFR and is part of billionaire Patrick Drahi’s telecom empire, shocked markets earlier this year when management told investors they would need to participate in “discounted transactions” to help the company cut its debt. The company previously designated its Altice Media unit as an unrestricted asset, ensuring that proceeds from its sale can be used for other ends than paying down debt. 

Altice International owns telecommunications operators in Portugal, Israel and Dominican Republic.

Filings to the Luxembourg registry show that Altice Luxco 3 Sarl was created on April 15. 

--With assistance from Libby Cherry and Benoit Berthelot.

(Updates with Altice International bonds prices in third paragraph and description in eighth.)

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